What Does A Solicitor Do? (And When Your Business Needs One)

When you’re building a business, you make decisions all day long - about customers, pricing, hiring, product, marketing, and growth. But at some point, most founders hit a legal question that isn’t just a quick Google search.

That’s usually when you ask what a solicitor does, and when you should bring one in.

In plain terms, a solicitor helps you manage legal risk while you run and grow your business. That could mean drafting contracts, negotiating deals, setting up the right structure, helping you comply with laws, or stepping in when a dispute is brewing. A good solicitor doesn’t just “do paperwork” - they help you make confident decisions that protect your time, money, relationships, and reputation.

Below, we’ll walk through what solicitors do in Australia specifically from a small business and startup perspective, with practical examples of when legal support can make a real difference.

What Is A Solicitor (And How Are They Different From A Barrister)?

In Australia, the word “lawyer” is often used as a general term. But it helps to know that there are different types of legal professionals, and they do different things.

Solicitors: Your Day-To-Day Legal Partner

A solicitor is usually the legal professional you’ll work with most as a business owner. Solicitors advise you on the law, help you plan your next steps, and handle legal work like:

• drafting and reviewing contracts
• negotiating with customers, suppliers, landlords, investors, and other parties
• advising on business structure and set-up
• helping you comply with Australian laws (like consumer, privacy, and employment rules)
• managing disputes (often before they become court proceedings)

For most small businesses, a solicitor acts like a risk-management partner - someone who helps you spot problems early and fix them before they become expensive.

Barristers: Court-Focused Specialists

A barrister is typically the legal professional who specialises in advocacy (appearing in court) and complex legal arguments. If a matter escalates to litigation, your solicitor may brief a barrister to appear in court on your behalf.

In many cases, as a small business owner, you might never deal directly with a barrister - your solicitor will coordinate that process if it becomes necessary. (There are also some limited situations in Australia where you may be able to access a barrister directly, depending on the state/territory and the type of matter.)

Why This Matters For Small Businesses

If you’re choosing who to speak to when a legal issue comes up, you’ll usually start with a solicitor. The right solicitor can often resolve issues early through good contracts, clear advice, and practical negotiation - meaning you may avoid court entirely.

When Should A Small Business Or Startup Talk To A Solicitor?

Many founders wait until something goes wrong before they speak to a solicitor. We get it - legal advice can feel like something you only need in a crisis. But in reality, the best time to speak to a solicitor is often before you sign something, launch something, or scale something.

Here are common “trigger points” where legal advice can save you a lot of time and cost later.

1. When You’re Setting Up Or Restructuring

Choosing the right structure (sole trader, partnership, company, trust, or a combination) affects everything from liability to tax. (Tax outcomes can be complex and depend on your circumstances, so it’s also worth speaking with an accountant or tax adviser alongside your solicitor.)

If you’re setting up a company, your solicitor can help ensure the legal foundation matches how you actually want to run the business - including shareholdings, decision-making, and what happens if a co-founder leaves. This is also where documents like a Company Set Up package can be crucial to getting things right from day one.

2. Before You Sign A Contract You “Can’t Easily Undo”

Some agreements have long-term consequences and can be hard to unwind, even if the deal turns out to be a bad one. This often includes:

• commercial leases
• supplier agreements with minimum orders or exclusivity
• customer contracts with strict service levels or liability terms
• software and platform agreements (especially if you’re building on third-party tech)
• investment terms (even early-stage)

Having a solicitor review the agreement before you sign can help you understand what you’re actually agreeing to - and negotiate changes where needed. For many businesses, a Contract Review is one of the most practical “first steps” legal-wise.

3. When You’re Hiring (Or Letting Someone Go)

Employment issues can escalate quickly if expectations aren’t clear. A solicitor can help you put the right agreements and processes in place, and make sure you comply with Fair Work requirements.

This includes help with hiring employees, engaging contractors, managing performance, and handling terminations. If you’re unsure where to start, speaking with an employment lawyer can help you avoid common (and costly) missteps.

4. When You’re Dealing With A Dispute (Even If It’s “Not That Bad Yet”)

Many business disputes start small: a late payment, a supplier not delivering, a customer unhappy, a former contractor making threats. Often, the earlier you get advice, the more options you have.

A solicitor can help you:

• work out your legal position and likely outcomes
• draft a clear demand letter or response
• negotiate settlement terms
• avoid admissions or statements that weaken your position

Even if you want to keep things amicable, legal guidance can help you communicate clearly and protect your rights.

What Does A Solicitor Do For A Business Day-To-Day?

So, practically speaking, what does a solicitor do when you engage them as a small business or startup?

Think of a business solicitor as someone who helps you make decisions with “legal certainty” - so you can keep momentum without stepping into avoidable risk.

Drafting Contracts That Match How You Actually Operate

Online templates can be tempting, but they often miss the details that matter to your business model. A solicitor can draft or tailor contracts so they reflect how you deliver your product or service in real life.

Common examples include:

• Customer terms (scope, payment, cancellations, liability, IP ownership)
• Supplier and manufacturing agreements (delivery times, quality standards, defects, warranties)
• Service agreements (what’s included, what’s excluded, and how changes are handled)
• Contractor agreements (confidentiality, IP assignment, non-solicitation)

The goal isn’t to make contracts “long” - it’s to make them clear, so you reduce misunderstandings and protect your cash flow.

Reviewing Risk In Deals And Negotiations

Solicitors don’t just check for typos. They look for commercial and legal risks, such as:

• uncapped liability (where you could be exposed to unlimited losses)
• one-sided termination rights (where the other party can exit easily but you can’t)
• IP ownership issues (especially for software, branding, and content)
• payment terms that increase the risk of non-payment
• privacy and data security obligations you may not be ready to meet

They can also suggest negotiation options, so you’re not stuck with “take it or leave it” terms.

Helping You Comply With Australian Business Laws

A solicitor can help you understand which laws apply to your business and what you need to do to comply. For small businesses and startups, this commonly includes:

• Australian Consumer Law (ACL): rules around advertising, refunds, warranties, and avoiding misleading conduct
• Privacy obligations: if you collect personal information (for example, customer emails, delivery addresses, payment details) - noting that some small businesses may be exempt from parts of the Privacy Act, and obligations can also depend on what you do with the information and the services you use
• Employment law: minimum entitlements, contracts, policies, and workplace processes
• Intellectual property: protecting your brand and avoiding infringement

Compliance is not just about avoiding penalties - it’s also about building customer trust and having systems that scale.

Protecting Your Brand, Content, And IP

If your startup has a name, logo, product design, software, content, or unique process, it likely has intellectual property (IP) worth protecting.

A solicitor can help you protect that value by:

• checking ownership (for example, ensuring contractors have assigned IP correctly)
• helping you protect your brand through a register your trade mark strategy
• drafting licensing terms if you’re letting others use your IP
• setting up confidentiality arrangements when sharing sensitive information

For many startups, your IP is a major asset - and it’s much easier to protect early than to “fix later”.

Common Legal Areas Where A Solicitor Helps Startups Scale

Early-stage businesses often focus on launching quickly. Then growth happens - and suddenly you’re dealing with bigger deals, more money, more people, and more responsibility.

This is where legal work becomes less about “getting started” and more about “scaling safely”.

Co-Founder And Investor Arrangements

If you have more than one founder (or you’re raising money), you’ll want your legal documents to reflect how decisions are made and what happens when circumstances change.

That’s where a Shareholders Agreement can become essential. It can cover issues like:

• who owns what (and whether equity vests over time)
• how key decisions are made
• what happens if someone wants to exit the business
• how disputes are handled
• rules around selling shares to third parties

These are uncomfortable topics to raise - but it’s much less uncomfortable than dealing with a co-founder dispute after you’ve built something valuable.

Online Business Compliance (Websites, Apps, E-Commerce)

If you operate online, you’ll usually need documents and settings that support compliance and manage risk.

For example, if you collect personal information (even just via a contact form or email list), you may need a Privacy Policy that accurately explains what you collect, why you collect it, and how it’s stored and used. (Whether you legally must have a Privacy Policy will depend on factors like whether the Privacy Act applies to you and what your platform partners require - but having one is often still good practice.)

A solicitor can also help with terms and conditions, disclaimers, and risk allocation - particularly if you’re offering subscriptions, digital products, or user-generated content.

Finance, Security Interests, And Business Lending

As your business grows, you might take on financing, offer credit terms, or secure equipment. You may also find yourself being asked to sign security documents.

A solicitor can help you understand and negotiate documents like a General Security Agreement, which may give a lender broad rights over business assets if you default. This is a common area where founders sign quickly without realising the long-term impact.

Even if the funding is crucial, you still want to know what you’re agreeing to - and whether there are more workable options.

Employment, Contractors, And Culture As You Grow

Hiring is exciting - and risky. As you scale, you’ll likely juggle:

• employees and contractors working side-by-side
• people accessing customer data and confidential information
• variable working arrangements (remote work, flexible hours, casual work)
• performance management and role changes

A solicitor can help you set up agreements and workplace policies that match your operations, comply with the law, and reduce confusion as your team expands.

How To Choose The Right Solicitor For Your Business

Not all legal support is the same - and as a small business owner, you want someone who understands that you’re moving fast, watching costs, and making practical decisions.

Here are a few things to look for.

They Understand Small Business Reality

You want a solicitor who can translate legal risk into business impact. That means giving advice that’s clear, prioritised, and aligned to what you’re trying to achieve - not just listing legal possibilities.

They Communicate Clearly (And Quickly)

Legal advice should help you move forward, not slow you down. Look for a solicitor who:

• explains legal concepts in plain English
• tells you what matters most (and what can wait)
• gives you practical options, not just problems

They Have Experience In Your Stage Of Growth

A startup raising investment has different legal needs to a local service business, and a scaling e-commerce brand has different risks again. A good sign is a solicitor who can point to common scenarios they’ve handled and explain what typically goes wrong (so you can avoid it).

They Help You Build Systems, Not Just Fix Emergencies

Ideally, you’re not engaging a solicitor only when there’s a fire to put out. Great legal support helps you build a repeatable “legal stack” - your core contracts, policies, and compliance settings - so you can scale with less friction.

Key Takeaways

• A solicitor helps your business manage legal risk through advice, contracts, negotiation support, compliance guidance, and dispute resolution.
• For small businesses and startups, solicitors often help most with contracts, business set-up, hiring, privacy/compliance, IP protection, and resolving disputes early.
• It’s usually worth speaking to a solicitor before signing key agreements like leases, supplier contracts, customer terms, or funding documents.
• As you scale, legal support becomes more important around co-founder/investor arrangements, online compliance, and employment processes.
• Choosing the right solicitor means finding someone who communicates clearly, understands small business realities, and gives practical, prioritised advice.

This article is general information only and isn’t legal advice. For advice tailored to your business, you should speak with a lawyer.

If you’d like help with contracts, compliance, or setting up your business the right way, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.